Forbearance is designed to carry a company across a difficult stretch, so there is no single time limit that applies to every case. A short freeze might last a few weeks; a payment arrangement might run for a few months; a hardship variation can extend the loan over a longer period where the difficulty is lasting.
We review as we go
Whatever the tool, we set a review point. At each review we look at how the plan is going and whether your circumstances have changed. If the business has recovered faster than expected, we can bring you back to the normal schedule sooner. If things are still tight, we can extend or adjust the arrangement rather than let it break.
Cost and the cap over a longer period
The longer forbearance runs, the more interest accrues at 0.25% per day — but the 100% cost cap means the total you repay is still limited to twice the sum borrowed. Because we take no personal guarantee, our focus stays on the company's genuine ability to recover, not on personal pressure.
We lend only to UK limited companies and LLPs, and the loan is to the company with no director personal guarantee. As business finance outside the consumer-credit regime, it is not covered by the Financial Ombudsman Service or FSCS.
See also: What happens to my arrangement if my circumstances change again?, What if my company's difficulty is permanent, not temporary?, Our hardship and forbearance process.